Merger Rumor
As there have been rumors that Samsung SDS’ IT service unit can be merged with Samsung Electronics in the process of Samsung Group’s governance restructuring, the price of Samsung SDS’ shares are on the increase.
As of 9:57 am on January 4, Samsung SDS’ stocks were traded at 146,000 won (US$121) on the securities market, up 4,000 won (US$3), or 2.82 percent, from the previous day. The purchase of institution and foreign investors pulled up its stock prices.
Chung Dae-ro, an analyst at Mirae Asset Daewoo, said in a report that Samsung Electronics can consider a merger with Samsung SDS’ IT service unit after turning into a holding company system through a spon-off. He said, “Samsung’s newly established holding company might choose to incorporate with the IT service unit of Samsung SDS to enhance its control over the entire group. Since the share value of Samsung SDS has fallen recently, there is more possibility to use it at the current level.”
Rather than selling the stake of Samsung SDS owned by owner family at currently low prices, the group is much more likely to use it to strengthen its dominance across all subsidiaries. Samsung Group and its owner family currently hold a combined 56.7 percent stake in Samsung SDS.